Purchasing ID Theft Insurance for Customer/Member

Question:

What is your thought on purchasing Identity Theft Insurance? We are thinking of linking up with a vendor who can provide this service for our members to purchase.

Answer:

As with any instance where you would appear to be "endorsing" a third-party vendor, you would face certain potential risks, the most notable of which would be reputation risk. For that reason, you would want to make sure the coverage was worthwhile, the company was solid, the company's information security practices were well-designed and properly implemented, and the insurance was a good value for the money.

First published on BankersOnline.com 2/7/05